What is Strategic Foresight and Why it Matters?

Strategy and related concepts are hard to define, even if the topic has been discussed for decades.

Panu Kause, 08.03.2016

Strategy and related concepts are hard to define, even if the topic has been discussed for decades. Whatever the terminology, every organization should be serious about its understanding of the future, says Panu Kause, an entrepreneur and former business executive.

What is Strategy?

The question of ”What is Strategy?” has been addressed by dozens of scholars and practitioners. Whatever your definition, the essence of any strategy is about building the future of the company.

Typically, your strategy may be about choosing and building up your own competitive space, or it may about developing skills and competencies hard to copy. Nevertheless, it is still about building the future of your company.

Since Strategic Foresight is all about future-oriented insights, it should always be considered a key concept of any strategic planning endeavour.

What is Strategic Foresight?

Strategic Foresight is about combining methods of futures work with those of strategic management. It is about understanding upcoming external changes in relation to internal capabilities and drivers.

Instead of trying to be comprehensive, here’s just a brief introduction into how I am today using the terminology when rolling up the sleeves and putting this stuff to practice.

Market Foresight is about the consideration of possible and probable futures in the organization’s relevant business environment, and about identifying new opportunities in that space. I prefer Market Foresight as a phrase over an earlier concept of Industry Foresight. This is simply because thinking across current industry boundaries is today an important source of innovation.

Strategic Foresight is a concept I deem synonymous with Corporate Foresight. It is about mirroring the possible and potential futures against the understanding of organization-specific capabilities, and those of one’s competitors. Ultimately, Strategic Foresight is about the strategic choices you make based on this combination of external and internal insight.

How Should I Organize for Market Foresight?

Most organizations have an in-depth understanding of their current industry key topics, technology trends, customer expectations, and so on.

However, true Market Foresight should be based on looking at cross-industry developments, not at the on-going trends of the current industry only. At least what you might call ‘radical innovation’ rarely emerges from within existing industry boundaries.

Furthermore, foresight work should be based on a combination of external market tracking and organization-specific sense-making. Plain trend reports or similar rarely bring direct value to your business.

Finally, the people involved in your foresight work should include individuals with diverse backgrounds. You should bring in people also from outside your own organization. There are some 7 billion people not working for you, and many of them are pretty smart. More importantly, most of their thinking is not limited by your business or industry legacy.

How to Use Foresight?

The practices and purposes of foresight work quite naturally depend on the organization in question.

Obviously, true foresight can help you in building long-term scenarios and in guiding your strategic targets and roadmapping.

Foresight is also about tracking foreseeable changes in buyer sentiment and behavior. Thus, you may identify new opportunities (or risks) even in the short term.

In terms of possible on-going strategic programs or must-win battles, you may bring in further steering and/or healthy criticism and questioning of their relevance.

Why Does Strategic Foresight Matter?

Let me repeat: the essence of any strategy needs to be about building the future of the company. Thus, one can easily identify two overlapping main purposes of Strategic Foresight.

First, the hardcore management aspect. Established businesses need to be turning the changes in their business environment to their own advantage. Not everything should be about fast-moving or even disruptive new entrants. And that’s certainly where Strategic Foresight matters.

Second, the leadership aspect. People need a direction to guide their efforts: a somewhat clear picture of what you believe your future environment will be like, and the position you are targeting in that environment, and why. That’s Strategic Foresight.

In Closing

I think systematically working on Strategic Foresight requires new skills and working methods across all organization levels.

Because whatever the terminology, any organization serious about its strategy and novel ideas should also be serious about a multi-faceted understanding of the future.

After all, in the absence of such understanding, what would your strategic plans be based on?

Panu Kause, CEO at Necorpoint, is also a member of the Strategic Management Society of Finland and a VIP member of the Boardman2020 network.

Get Monthly Insights to Your Email

Aalto Leaders’ Insight shares fresh stories, articles and views on different aspects of leadership, business and self-development. See a sample of Highlights of Aalto Leaders' Insight newsletter that is sent maximum twice per month to the subscribers. Easy to unsubscribe. See a sample.

My email address *

Your email is used for marketing purposes to keep you up to date with the latest business insights and information on programs that will help you enhance your career. By subscribing, you accept this. See our
Privacy Policy.

We use cookies on this site to improve user experience. By continuing to use our services, you accept our Privacy Policy.

Send Us Message

First and Last Name *

Email *

Phone number

+-

Yes,keep me updated about the program

My message *

Privacy Policy

About this Website and Privacy Policy

Main Points

Purpose for the processing of personal data

The purposes for the processing of personal data include: the management of customer relationships; the realization of the rights and obligations of the customer and the controller; the processing of personal data in accordance with the Personal Data Act with regards to online services; research activities; and, steering the advertising and/or direct marketing of the controller and/or its partners on the basis of personal data via the controller’s media channels and services without disclosing any personal data to an external party.

Content of the register for marketing

The register may contain the following information:

Name

E-mail address

Mobile phone number and/or other telephone number

Name of the organization and position in the organization

Address of the organization

Access log

Marketing automation and profiling

Aalto EE websites run a marketing automation system that is used to

improving general user experience of Aalto EE’s web services, e.g. highlighting services that are of highest importance to the visitor;

Aalto EE sets a cookie to learn how visitors consume content in all its digital services. Visitor’s person stays anonymous to Aalto EE until

1. Visitor fills in contact information on some webform

The user's personal information may be linked to the cookie when she reveals her person by filling in a webform, e.g. application/registration, request for information or newsletter subscription. The information given is stored in Aalto EE’s marketing or customer register.

2. Visitor arrives at the website from an email marketing message sent by Aalto EE

The user's personal information may be linked to the cookie when the user arrives at the website via an email marketing message sent by Aalto EE. The sources for e-mail marketing messages are Aalto EE’s marketing or customer register. A user whose cookie is linked to personal data can receive email marketing that is personalized based on her website visitor history.

Your email is used for marketing purposes to keep you up to date with the latest business insights and information on programs that will help you enhance your career. By subscribing, you accept this. See our Privacy Policy.